1.Define velocity of money and list the major determinants of velocity.

2.Assume GDP is currently $23,500 billion per year and the quantity of money is $940 billion.What is the velocity of money?The nation collectively holds enough money to finance how many days worth of GDP expenditure?

3.Ifbank A borrows $50 million from bank B, what happens to the reserves in bank A? In the banking system? Please explain.

4.If bank A borrows $50 million from the Fed, what happens to reserves in bank A?.In the banking system? Please explain.